GE and SNC-Lavalin in $437m Polish combined cycle deal

Canadian engineering group SNC-Lavalin (TSX: SNC) and General Electric have been awarded a turnkey contract by to build a $437m combined cycle power plant in Poland.

The plant will be owned by PKN Orlen, one of Central Europe’s largest crude oil refiners and fuel retailers, and marks the company’s “flagship endeavour” to break into the power market.

PKN Orlen president Jacek Krawiec said the deal “gives a go-ahead to growth-oriented investment plans in the power segment, which are part of PKN Orlen’s new strategy for 2013–2017. It envisages an over fourfold increase in generation capacity in the next five years, which will be based on gas-fired technologies and electricity/heat cogeneration.”

The 463 MW plant will be powered by a gas turbine with a heat recovery steam generator and steam turbine. GE will build the turbines and HRSG while SNC-Lavalin will provide all other plant equipment, as well as project management, engineering, procurement, construction, start up and commissioning services.

Construction is scheduled to start in March 2013 and is expected to take 36 months.

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